Crypto Mainstreaming in 2025 Through Stablecoins: An Opinion Piece
Cryptocurrency's wild ride isn't slowing down anytime soon, with the teenage titan Bitcoin leading the charge. This decentralized finance industry is in a constant state of flux, giving birth to new players like stablecoins that are helping bridge the gap between the traditional and crypto worlds.
Stablecoins, often overshadowed by the unpredictable volatility of big shots like Bitcoin and Ethereum, provide a much-needed dose of stability in this unpredictable market. Their value tethered to fiat currencies, most commonly the U.S. dollar, provides a stable medium of exchange, making them increasingly appealing for both individual users and institutional investors beyond the crypto community.
The soaring popularity of stablecoins
Data tells the tale - a report by Artemis and Dune reveals that active stablecoin wallets have spiked by 53% over the past year, climbing from 19.6 million in February 2024 to over 30 million in February 2025. This surge demonstrates a growing trust in stablecoins as a reliable financial tool, linking the traditional finance world to the crypto sphere.
This growth isn't just about numbers; it’s about a shifting perspective towards digital currencies. The stability offered by digital assets exchangeable 1:1 with fiat currencies makes them perfect for everyday transactions, savings, and even a hedge against cryptocurrency’s notorious volatility.
The United States has stepped into the regulatory scene with guidelines for stablecoin regulation. According to Selva Ozelli, an international tax attorney and regular columnist at Crypto.news, these guidelines require stablecoins to be backed by readily liquid assets like USD cash equivalents, demand deposits with banks, US Treasury securities, and money market funds, excluding precious metals and other crypto assets.
The dominant players in the stablecoin game, USDT and USDC, show no signs of slowing down. According to Albridge internal analytics, USDT continues to lead in transaction volume, demonstrating 7% to 20% growth in month-over-month transaction volume between March 2024 and March 2025. USDC, USDT's runner-up, averages lower transactional activity, accounting for just 25% of the total volume, which varies between $85M and $198M between February 2024 and February 2025. In a word, stablecoins are gaining momentum.
Stacking up against traditional payment networks
Stablecoins' practical utility is on full display in their impressive transaction volumes. An asset management firm issued a report earlier this year that highlighted the growth of stablecoin adoption, whose transaction value in 2024 surpassed $15.6 trillion, outdoing traditional payment firms Mastercard and Visa by more than 100%. This colossal volume underscores the increasing reliance on stablecoins for a wide range of financial activities, from remittances to institutional settlements.
Citigroup, a multinational investment bank, forecasts a possible fivefold increase in the stablecoin market over the next five years, potentially reaching nearly $4 trillion. Moreover, if the U.S. implements a regulatory framework, stablecoin issuers could become significant holders of U.S. Treasuries by 2030, potentially generating over $1 trillion in additional demand for Treasuries due to the expansion of stablecoins.
Smoothing out the blockchain bumps
Weaving through various blockchains can be a headache for users and developers alike. Delivering a user-friendly web3 experience is crucial for achieving broad adoption in the crypto industry, but it's challenging due to the intricacies of cross-chain token transfers, sluggish speeds, and safety concerns.
As the crypto landscape fragments with numerous blockchains, seamless interoperability is more essential than ever. Allbridge Core addresses these challenges by offering a native stablecoin bridging experience, enabling seamless cross-chain swaps between EVM and non-EVM blockchains. With over a million total transfers and a total value locked exceeding $28 million, Allbridge Core epitomizes the infrastructure required for a harmonious DeFi environment.
Friendlier regulation and institutional backing
Stablecoins' growth isn’t happening in isolation. Regulatory frameworks are evolving to accommodate and oversee this expanding sector. The advancement of the GENIUS stablecoin bill to the U.S. Senate floor marks a significant leap towards incorporating stablecoins into the U.S. financial system.
The GENIUS Act, introduced by Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis, aims to establish a clear regulatory framework for payment stablecoins, providing guidelines for licensing, oversight, transparency, reserve standards, consumer protection, and compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. This legislation seeks to bolster blockchain innovation in the United States, ensuring financial stability while fostering responsible growth in the digital asset space.
Institutional players are also jumping on the stablecoin bandwagon. Major financial brands like Visa and Stripe-owned Bridge are planning to launch Visa cards tied to stablecoins, making crypto-funded payments as breeze as traditional card transactions. Mastercard announced a partnership with OKX and Nuvei to deliver comprehensive stablecoin payment solutions, simplifying stablecoin usage for both consumers and merchants, mirroring the simplicity of traditional card payments.
Stablecoins: the backbone of crypto mass adoption
Stablecoins have outgrown their initial role as mere digital representations of fiat currencies. They have become a fundamental cog in the crypto economy, powering transactions, enabling cross-chain interoperability, and attracting institutional investment.
As we sail through 2025, stablecoins' trajectory suggests they will remain the backbone of broader crypto adoption. Their inherent stability, combined with technical advancements and regulatory support, positions them as the bridge between traditional finance and the decentralized future. For individuals and institutions alike, embracing stablecoins could be the ticket to tapping into the full potential of the crypto economy.
Andriy Velykyy, a co-founder at Allbridge, is a Warwick Business School alumnus. He entered the crypto space in 2015 and, recognizing the need for bridging solutions, co-founded Allbridge in May 2021 alongside Yuriy Savchenko. Allbridge's flagship product, Allbridge Core, launched in 2022, delivers a more efficient and user-friendly approach to bridging.
- Stablecoins, often overlooked amidst the volatility of cryptocurrencies like Bitcoin and Ethereum, have garnered a much-needed attention due to their stability, with active wallets spiking by 53% over the past year.
- The increasing trust in stablecoins as a reliable financial tool is shown through the soaring transaction volumes, which surpassed $15.6 trillion in 2024, outdoing traditional payment firms like Mastercard and Visa.
- Dominating players USDT and USDC continue to lead in the stablecoin market, with USDT demonstrating 7% to 20% growth in monthly transaction volume between March 2024 and March 2025.
- Regulations are evolving to accommodate the stablecoin sector, with guidelines requiring stablecoins to be backed by readily liquid assets to ensure stability and prevent volatility.
- Institutional players like Visa, Stripe-owned Bridge, and Mastercard are jumping on the stablecoin bandwagon, planning to launch stablecoin-tied cards and partnerships for comprehensive stablecoin payment solutions.
- Stablecoins have become the backbone of the crypto economy, powering transactions, enabling cross-chain interoperability, and attracting institutional investment, making them key for broader crypto adoption.
